Class 2 National Insurance

Class 2 NI for the Self-Employed

Class 2 National Insurance is paid by self-employed workers with profits above the Small Profits Threshold (£6,725 for 2025/26). The rate is a flat £3.45 per week (£179 per year). Despite the small amount, paying Class 2 NI is important as it counts towards your State Pension qualifying years.

Class 2 NI is collected through your self-assessment tax return, not through PAYE. If your profits are below the threshold, you can choose to pay voluntarily to protect your pension entitlement.

Self-employed workers also pay Class 4 NI on profits above £12,570. Use our self-employed calculator to see your total NI liability.

How Class 2 Ni Works in Practice

Class 2 National Insurance was traditionally paid by self-employed workers to build State Pension entitlement. From April 2024, mandatory Class 2 NI was abolished for most self-employed people — they now build qualifying years through their self-assessment record without needing to make Class 2 payments. Voluntary Class 2 can still be paid to fill NI record gaps at a low cost (£3.45/week in 2025/26).

Practical Tips

If you are self-employed with profits above the Lower Profits Limit (£12,570), you automatically receive a qualifying year for State Pension purposes without paying Class 2 NI. If your profits are below this limit, you can choose to pay voluntary Class 2 NI (approximately £179/year) to protect your State Pension entitlement. This is significantly cheaper than voluntary Class 3 NI (£907/year) and provides the same pension benefit.

Related Topics

Class 2 NI should not be confused with Class 4 NI, which is the profit-based NI charge that generates revenue for the government. Class 4 NI is paid alongside income tax through self-assessment.